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South Korea’s largest cryptocurrency exchange, Upbit has cleared itself of all fraud charges leveled against it by the Korean Financial Intelligence Unit (KIU).

It would be recalled that a joint action by the Financial Services Commission, and Seoul Police gave orders to 10 officers to take control of the exchange and its assets.

Upbit said it has conducted an internal audit and there are no proofs that there were fraudulent activities in the company’s dealings on digital assets.

According to NewsBTC which cited Lee Seok-woo, president of Upbit’s parent company Dunamu Inc., claims the internal audit dismisses the suspicion of “book-trading”, according to local news agency Money Today.

“In early March, when Upbit was suspected of only book transactions without coins…I have been notified that the amount of coins is 100% identical to the number of coins” in the wallets.”

According to the exchange, there is a separate wallet for keeping and storing virtual currencies apart from the deposit and withdrawal wallets, and virtual currencies without depository wallets are kept there. This storage wallet can only be withdrawn together with Bittrex (its US affiliate) and a trusted third party.

An accounting firm official in South Korea commented the allegations.

“The accountant did not sign a notarial because he confirmed the record. Even if there is no clear evidence that you did not trade on a book without a virtual currency, it could be used as a reference.”

Upbit calls this whole situation a misunderstanding as it has “never bought or sold cryptocurrencies that it did not own since it opened last October”. The operator claims that in any way it has facilitated of digital assets without having such currencies, aka book-trading, and the suspicions are unfounded. Most transactions are made through US-affiliate Bittrex and that is what may be causing confusion among authorities.